Simon Property Group Inc. [NYSE: SPG] plunged by -$1.6 during the normal trading session on Wednesday and reaching a high of $88.88 during the day while it closed the day at $87.19. The company report on November 24, 2020 that Simon Property Group Closes Upsized Common Stock Offering.
Simon Property Group, Inc. (NYSE: SPG) (“Simon” or the “Company”), a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, announced the closing of its public offering of 22,137,500 shares of common stock, which includes an upsized base offering of 19,250,000 shares of common stock and an additional 2,887,500 shares of common stock issued in connection with the underwriters’ exercise of an overallotment option. Net proceeds from the offering, after underwriting discounts and commissions, are approximately $1.56 billion.
The Company intends to contribute the net proceeds from the offering to Simon Property Group, L.P. which intends to use such proceeds to fund the previously announced acquisition of an 80% interest in The Taubman Realty Group Limited Partnership (the “Taubman Acquisition”) in part and for other general business purposes, which may include, without limitation, repaying or repurchasing indebtedness, working capital and capital expenditures.
Simon Property Group Inc. stock has also gained 13.81% of its value over the past 7 days. However, SPG stock has inclined by 29.04% in the 3 months of the year. Over the past six months meanwhile, it has gained 51.11% and lost -41.47% year-on date.
The market cap for SPG stock reached $26.52 billion, with 305.91 million shares outstanding and 304.40 million shares in the current float. Compared to the average trading volume of 5.66M shares, SPG reached a trading volume of 5962843 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Simon Property Group Inc. [SPG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SPG shares is $83.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SPG stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Goldman have made an estimate for Simon Property Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 01, 2020. While these analysts kept the previous recommendation, Compass Point raised their target price to Buy. The new note on the price target was released on June 04, 2020, representing the official price target for Simon Property Group Inc. stock. Previously, the target price had yet another drop from $130 to $60, while Wells Fargo kept a Equal Weight rating on SPG stock.
The Average True Range (ATR) for Simon Property Group Inc. is set at 4.58, with the Price to Sales ratio for SPG stock in the period of the last 12 months amounting to 5.34. The Price to Book ratio for the last quarter was 15.60, with the Price to Cash per share for the same quarter was set at 3.56. Price to Free Cash Flow for SPG in the course of the last twelve months was 508.93.
SPG stock trade performance evaluation
Simon Property Group Inc. [SPG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 13.81. With this latest performance, SPG shares gained by 40.67% in over the last four-week period, additionally plugging by 51.11% over the last 6 months – not to mention a drop of -42.16% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SPG stock in for the last two-week period is set at 68.35, with the RSI for the last a single of trading hit 70.48, and the three-weeks RSI is set at 65.10 for Simon Property Group Inc. [SPG]. The present Moving Average for the last 50 days of trading for this stock 69.14, while it was recorded at 84.63 for the last single week of trading, and 71.08 for the last 200 days.
Simon Property Group Inc. [SPG]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Simon Property Group Inc. [SPG] shares currently have an operating margin of +35.95 and a Gross Margin at +60.14. Simon Property Group Inc.’s Net Margin is presently recorded at +36.78.
Return on Total Capital for SPG is now 7.40, given the latest momentum, and Return on Invested Capital for the company is 8.43. Return on Equity for this stock inclined to 71.67, with Return on Assets sitting at 6.74. When it comes to the capital structure of this company, Simon Property Group Inc. [SPG] has a Total Debt to Total Equity ratio set at 976.89. Additionally, SPG Total Debt to Total Capital is recorded at 90.71, with Total Debt to Total Assets ending up at 79.02. Long-Term Debt to Equity for the company is recorded at 877.24, with the Long-Term Debt to Total Capital now at 80.09.
Reflecting on the efficiency of the workforce at the company, Simon Property Group Inc. [SPG] managed to generate an average of $463,711 per employee. Receivables Turnover for the company is 7.11 with a Total Asset Turnover recorded at a value of 0.18.
Earnings per share (EPS) analysis for Simon Property Group Inc. [SPG] stock
With the latest financial reports released by the company, Simon Property Group Inc. posted 1.66/share EPS, while the average EPS was predicted by analysts to be reported at 1.56/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SPG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Simon Property Group Inc. go to 8.60%.
Simon Property Group Inc. [SPG]: Insider Ownership positions
There are presently around $23,810 million, or 90.90% of SPG stock, in the hands of institutional investors. The top three institutional holders of SPG stocks are: VANGUARD GROUP INC with ownership of 43,289,512, which is approximately 9.246% of the company’s market cap and around 0.51% of the total institutional ownership; BLACKROCK INC., holding 31,890,321 shares of the stock with an approximate value of $2.78 billion in SPG stocks shares; and COHEN & STEERS, INC., currently with $2.27 billion in SPG stock with ownership of nearly 36.666% of the company’s market capitalization.
Positions in Simon Property Group Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 348 institutional holders increased their position in Simon Property Group Inc. [NYSE:SPG] by around 27,338,112 shares. Additionally, 314 investors decreased positions by around 34,417,851 shares, while 105 investors held positions by with 211,330,861 shares. The mentioned changes placed institutional holdings at 273,086,824 shares, according to the latest SEC report filing. SPG stock had 88 new institutional investments in for a total of 1,900,583 shares, while 88 institutional investors sold positions of 6,983,892 shares during the same period.